Asian mkts will remain volatile : Julius Baer

It is a see of green all across Asian markets lifting the regions benchmark index from a 21 month low as concerns eased that credit losses and near record fuel cost will also erode company profits.

Speaking to CNBC-TV18 Nimeesha Takalkar, Equity Research Asia at Julius Baer believes that the Asian markets though up in green today may remain volatile and any upsurges in prices should be taken as opportunities to book profit.

She further adds that the sentiment does bounce back from time to time but we see this as volatility much more than any end of the bottom.

Excerpts from CNBC-TV18's exclusive interview with Nimeesha Takalkar:

Q: How sustainable do you think today’s pump up is, is it just a follow up from those overnight Wall Street cues or does it have any fundamental strength of its own?

A: We believe that the market will remain very volatile for now and any sharp upsurges in prices should actually be opportunities to take profits. We do not think its time yet to do bottom fishing and that’s simply because corrections could happen once again, volatility will remain for now and the markets may not run away anywhere in the immediate future.

The clues that we like to see from other markets do raise up the sentiment but to bring back a little reality that Fannie Mae, Freddie Mac have been pointed out as requiring recapitalization, we take clues from this as possibly another set of interest rate hikes across the board because the credit supplies may not be available on friendly terms to corporates, that means cost of funding may increase. On valuation terms this may mean as a discounting factors may further revise up in particularly for emerging markets.

We find over the last four weeks that foreign flows have actually been outwards from emerging markets and particularly Asia, so the sentiment does bounce back from time to time but we see this as volatility much more than any end of the bottom.